Dialight plc announced that Clive Jennings has stepped down as Chief Financial Officer and executive director of the Company with immediate effect. The Company will commence a search for a successor in due course. The board of directors wishes to thank Clive for his contribution to the Group and wishes him well in the future.
Dialight also released its half year results for the period ended 30 June 2023.
Key points and outlook
- At constant currency Group orders down 12%, with Lighting 6% lower than H1 2022 as a result of weak capex orders, Signals & Components 25% lower
- Group revenue 13% lower than the prior year (9% at reported currency), largely driven by the cyclical downturn in Signals & Components
- Gross margin fell to 29.6%, as a result of continued elevated component costs together with lower overhead absorption (2022: 34.9%). The Group had an operating loss of £2.5m in the first half
- Net debt at 30 June 2023 of £22.7m, driven by the loss in the period, compared to £20.9m at year-end 2022
- Current trading and the full year outlook are below our prior expectations. However, the Board expects an improved second half trading performance when compared to the first half and the prior year period driven by a solid order book in the seasonally strongest period, lower component costs coming through and cost savings. Expected to deliver progress in 2024.
Strategic and operational review
- The Board, led by new Chair Neil Johnson, has undertaken a detailed review of the Group’s operations and strategy
- Concluded that the Group has significant opportunities within its core LED Lighting market, with the potential to deliver increased growth and materially improved profitability
- Transformation plan to be initiated in H2 2023, focused on: o Streamlining the Group to focus on core LED Lighting business o Resetting and realigning the Group’s cost base; and o Accelerating growth in key lighting markets
Fariyal Khanbabi, Group Chief Executive, said: “It has been a pleasure working with the new Board to create our transformation plan, which we believe will make Dialight a more focused, leaner organisation that is better able to capitalise on the opportunities presented by structural growth trends in the industrial LED lighting market. Combined with a reduced cost base and investment in improved manufacturing productivity, this should enable the Group to achieve higher underlying profitability over the medium term. With the Group’s markets remaining challenging the Board is focused on driving execution of the transformation plan, with initial restructuring actions to be taken in the second half of 2023.”
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